Texas's new laws concerning the concealed and open carry of handguns took effect earlier this year. We summarize the steps a business owner must take if you want to exercise your right to prohibit the open or concealed (or both) carrying of handguns on your property. Continue reading

In 2013 the Texas Commissioner of Insurance adopted a number of changes to the Texas Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (the "Texas Title Manual"). Those changes became effective January 3, 2014. A few of the more significant changes are summarized below. For more information, and to subscribe to updates to the Texas Title Manual, visit the Texas Land Title Association's website. Procedural Rule P-57 was amended to include "Fairway language" for an optional coverage in the T-26 Additional Insured Endorsement.The amended endorsement now will allow transfer of... Continue reading

"Bankruptcy allows the sale of real property free and clear of certain liens and interests. A covenant running with the land, however, is likely not affected by a sale in bankruptcy. Whether a right is a covenant running with the land is thus a crucial issue, especially when a debtor in bankruptcy seeks to strip the right without the owner’s consent. The Fifth Circuit recently held in Newco Energy v. Energytec, Inc. (In re Energytec, Inc.),[1] that a right to a transportation fee in connection with a pipeline and a right to consent to the assignment of the pipeline were... Continue reading

I've been asked to share with my readers that the Department of Business Law at California State University, Northridge is accepting applications for an Assistant Professor position to begin in fall 2014. Here is their announcement: Qualifications: J.D. from an ABA-accredited law school and admission to the bar required. Significant and substantial experience in the practice of law is required. In addition, previous experience in teaching law at the university level, an M.B.A. degree from an accredited college or university, law review membership, experience as a law clerk at the appellate level, a history of scholarly research and publications, and... Continue reading

In case you were not aware, effective July 1, 2013, all Uniform Commercial Code forms will change. Examples of the new forms are available on the Texas Secretary of State's website. Laura McClellan Thompson & Knight LLP Email me Continue reading

When is a loan document not evidence of a loan, but rather of an equity investment? In their article, “9th Circ. Favors Substance Over Form In Fitness Holdings,” Thompson & Knight Partner Ira L. Herman and Associate Evelyn Breithaupt discuss the nuances of the Ninth Circuit decision in In re Fitness Holdings International Inc. (2013 U.S. App. LEXIS 8729). This ruling and similar decisions permit the recharacterization of an obligation labeled as debt, as equity. This decision is an important reminder that although parties may structure a transaction to look like a loan, courts have the inherent authority to determine... Continue reading

My partner, Alfred M. Meyerson, recently addressed this question in a very informative article in The Metropolitan Corporate Counsel. Besides explaining why you really do need a Texas lawyer working on your Texas real estate deal, Alfie also summarizes some important idiosyncracies of Texas real estate law that you should be aware of if you're doing a deal in the state. I highly recommend this article for your review. Check it out by clicking on this Texas counsel article link. Laura McClellan Thompson & Knight LLP Email me Continue reading

The Arkansas Law Review will be publishing a paper analyzing real property recording systems and the foreclosure crisis. You might find it interesting. You can download Professor Donald J. Kochan's paper, Certainty of Title: Perspectives after the Mortgage Foreclosure Crisis on the Essential Role of Effective Recording Systems, by clicking on the link in the article title in this sentence. Laura McClellan Thompson & Knight LLP Email me Continue reading

A lot of people I talk to seem to be cautiously optimistic about the real estate market and where it's headed this year. Keith Mullen, author of the hugely helpful blog, Lenders 360, recently posted his thoughts on lessons learned about distressed real estate from 2012 and his predictions for the real estate lending market in 2013. I've included only his list below, but I urge you to check out his blog (click on the link at the end of the list) for his brief discussions of each point. Keith's Lessons from 2012: Realistic Expectations Regulators in No Big Hurry... Continue reading

Happy to be guest blogging today over at my former T&K colleague's blog. Check it out to learn Eight Actions Law Firm Associates Can Take to Succeed. Laura McClellan Thompson & Knight LLP Email me Continue reading

The Berkeley Business Law Journal and the Berkeley Center for Law, Business and the Economy invite you to attend a Symposium on The Foreclosure Crisis: Challenges and Solutions to the Mortgage Meltdown Friday, April 13, 2012; 8:30am-1:30pm International House; 2299 Piedmont Avenue - Berkeley, CA Home foreclosures continue to plague the US economy and wreck havoc in the lives of individuals, families and communities. Attempts to resolve the foreclosure crisis have sparked government programs, lender initiatives, and multiple lawsuits. Speakers from UC Berkeley will join other scholars, business leaders, and policymakers to address what the public and private sectors should... Continue reading

Borrowers typically think of CMBS loans as being recourse only to the collateral for the loan, i.e. the property. They also believe that if they cooperate with the lender after a default they will be able to walk away without personal liability under the loan so long as they do not do certain “bad boy” acts like misappropriation or waste of the collateral. However, recent cases are holding that if the recourse carveouts are triggered, whether inadvertently, and even cured, that the guarantors will become fully liable for the entire balance of the loan. My colleagues at Thompson & Knight... Continue reading

In a recent intriguingly titled post ("Be the Lawyer Who Sits on the Toilet Seat") to her excellent legal blog, My Shingle, Carolyn Elefant described her family's treatment at the hands of two very different doctors during the last week of her recently deceased father's life. She then eloquently...

In a recent intriguingly titled post ("Be the Lawyer Who Sits on the Toilet Seat") to her excellent legal blog, My Shingle, Carolyn Elefant described her family's treatment at the hands of two very different doctors during the last week of her recently deceased father's life. She then eloquently drew some valuable lessons for lawyers from these doctors' contrasting behavior. At this point I'm not sure how many of my readers are lawyers, but I found this post thought-provoking and relevant both to my own law practice and, to a large extent, the roles of all business people when interacting... Continue reading

The law firm of Thompson & Knight LLP is pleased to announce that Emily A. Parker has been named Managing Partner of the Firm effective February 15. Parker, the first female attorney hired by Thompson & Knight in 1973, has previously served as a Practice Group Leader and Hiring Partner, as well as two terms on the Firm’s Management Committee. From 2002 to 2004, Parker was Deputy Chief Counsel and later Acting Chief Counsel of the Internal Revenue Service, where she was ultimately responsible for all legal matters within the IRS and leadership of the agency’s more than 1,500 attorneys.... Continue reading

Did you know that every other year the American College of Mortgage Attorneys updates its Mortgage Law Summary? This hefty volume offers a compendium of useful information regarding mortgage law topics in each state and Puerto Rico. Each jurisdiction's summary is prepared by licensed attorneys from that jurisdiction, is subject to peer review, and covers such topics as the form of security instrument used, recording requirements, the foreclosure process, usury limits, title insurance options, and many other topics of interest to mortgage attorneys and their lawyers. The most recent edition of the Mortgage Law Summary, edited by yours truly, was... Continue reading

Thank you for the compliment. I'm always open to suggestions for blog topics, so if there's a real estate or real-estate-finance question you'd like me to address in this blog, be sure to let me know via email or comment here.

When making real-estate-secured loans, lenders routinely require borrowers to maintain specified types and amounts of insurance on the property that serves as the lender's collateral. Loan document insurance provisions also typically require the borrower to provide to the lender evidence that th...

In a recent decision, the US District Court in Arizona ruled on a dispute between a senior (real-estate-secured) lender and the mezzanine (ownership-interest-secured) lender on a resort property in Arizona, granting the senior lender's request for a preliminary injunction to prevent the mezzanine lender from conducting a UCC sale of its collateral. The ruling in U.S. Bank National Association, Trustee v. RFC CDO 2006-1 Ltd. has drawn a lot of attention among lenders and their lawyers because of its implications in the many such disputes now or anticipated to be engaged. The ruling turned on the interpretation of provisions in... Continue reading

Giveaway has ended. Winners will be announced on February 3rd, 2012. We've heard from many of you that blogging on TypePad from your iPad has needed improvement. Your feedback prompted us to team up with our new heroes over at Blogsy to integrate TypePad into their truly stellar iPad app. It's a...

When making real-estate-secured loans, lenders routinely require borrowers to maintain specified types and amounts of insurance on the property that serves as the lender's collateral. Loan document insurance provisions also typically require the borrower to provide to the lender evidence that the required insurance is in place. As a reminder, Texas law prohibits lenders from requiring a borrower to provide evidence of renewal/replacement policies any sooner than 15 days before the expiration of an existing policy (Sec. 549.054 of the Texas Insurance Code). If you have questions about insurance requirements or other loan document provisions, feel free to contact me.... Continue reading